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Categories Crypto

BinanceUS Teams Fireblocks to Strengthen Asset Security

Author September 11, 2024
BinanceUS, the American division of the world’s largest cryptocurrency exchange, has teamed up with the digital asset custody company Fireblocks.
This partnership is intended to boost user and regulatory confidence by ensuring the secure handling of customer assets through advanced wallet technologies for both storage and transactions. Fireblocks will also enhance the staking services offered by Binance.US, which boasts a robust selection of tokens available for staking, notable for a US-based exchange.

Binance.US Partners with Fireblocks to Enhance Security

Founded in 2019, BinanceUS has come under intense regulatory scrutiny, particularly following a major enforcement action against its parent company Binance, and its founder, Changpeng Zhao, over alleged violations of securities laws.

Earlier this year, BinanceUS secured a partial victory against the US SEC regarding transparency, particularly regarding its practices around the custody and control of customer assets and key management.

As regulatory scrutiny on security and compliance increases, Fireblocks CEO Michael Shaulov emphasized the importance of leveraging technology that meets regulatory demands without compromising user experience.
According to him, the exchange’s integration of Fireblocks’ wallet infrastructure ensures robust custody operations that align with regulatory expectations. Additionally, this integration allows the exchange to enhance its staking operations, making them secure and efficient, thereby improving the overall user experience for token staking and reward earning.

Binance.US Loses Licenses Due to Founder’s Legal Woes

Recently, an increasing number of US states decided to withdraw or chose not to renew the money transmitter licenses of BAM Trading Services Inc., known as Binance.US, due to compliance issues and legal challenges associated with CZ Zhao.

The North Dakota Department of Financial Institutions recently announced the revocation of BinanceUS’s money transmitter license, citing non-compliance with state laws. They noted that Changpeng Zhao, who had a majority beneficial ownership and control of the company, pleaded guilty to felony charges for violating US anti-money laundering laws.

Zhao is currently serving a four-month prison sentence following Binance’s settlement with the US Department of Justice (DOJ). He admitted to breaches of the Bank Secrecy Act. As part of the plea agreement, Binance is required to pay $4.3 billion in fines and penalties, although the DOJ initially sought a three-year sentence for Zhao.

Crypto users expressed varied opinions on the sentencing. Initially, the market reacted negatively, but several analysts suggested that the CZ Zhao’s arrest impact might be minimal.

A recent price analysis showed that BNB price could hit $600 following Changpeng Zhao’s release. BNB price is experiencing a potential double-bottom reversal within a broadening wedge, boosted by the recent approval of the PFAK license for Tokocrypto in Indonesia and the anticipated release of former Binance CEO Changpeng Zhao. The Binance coin price is further supported by significant trading volume growth and regulatory milestones, raising investor confidence.

Regulatory clampdowns by global authorities typically cast a bearish shadow over crypto assets, contributing to market uncertainty. The sentencing of CZ further underscored these regulatory pressures, influencing how the crypto market perceived future stability and regulatory interventions.

The post BinanceUS Teams Fireblocks to Strengthen Asset Security appeared first on CoinGape.